Let’s talk about straight up real estate investing for retirement. I see you rollin’ your eyes, and yeah, I know that’s what the blog’s about. But instead of the nuts ‘n bolts of things, or an involved, somewhat layered strategy, let’s just talk about the vision you have for your retirement. Most of the people with whom I discuss that topic don’t have much more than an ambiguously focused retirement picture.
It’s one thing to save and invest for the future. It’s quite another to understand the what, why, when, and how when it comes to, you know, arriving at that future grinnin’ ear to ear. Some out there have a future, while others have a FUTURE. The key to it all has been, and in my opinion always will be — having a Plan and executing it on Purpose.
BawldGuy Axiom: Owning investment property doesn’t make one a real estate investor.
Purposeful Planning is the foundation of your retirement.
Deciding to do some research resulting in an income property investment or two, isn’t a strategy, and certainly isn’t a Plan. It may have a Purpose driving it, but without any defined destination. I’m here to tell ya, that matters. Big time.
What needs to be done?
Before even the first move — what level of investment sophistication describes you, generally speaking? The answer only matters in the sense that you’re being honest with yourself. Most need a professional. The exceptions are few and far between. Even most of those thinking they’re exceptions, weren’t. ‘Course they find that out too late in most cases
First thing outa da box is to fully understand where you are now, this minute. You can’t begin to plan for your retirement before knowing your current status. No exceptions. Ever find yourself in front of a mall’s map board? You find the store you wanted, take a step, then realize you better find the little ‘you are here’ arrow first. We can’t get to point B till we now exactly where point A is. It’s much like heading from Miami to Chicago. You’ll be headin’ in the opposite direction I will, beginning from San Diego. Sounds pretty Captain Obvious, but loads of folks begin investing without knowin’ their point A.
The next couple boxes to check kinda go hand in hand. Where is your capital comin’ from? Savings? Home equity? Stock market? Some other source? Locate the source of your capital. Once that’s done, you’ll need a lender. Sounds simple, right? So’s callin’ balls ‘n strikes in a Division I baseball game — unless it’s a Little League umpire masquerading as an NCAA quality umpire — then the canine excrement hits the whirling metal blades. Most lenders couldn’t spell investment if you spotted them ‘invest’. That’s not a criticism — unless they’re posing as one, when they’re clearly not.
Can’t tell ya how many times I’ve had clients vociferously insist upon their buddy, Uncle Frank, or the guy their boss recommended, be their lender. I used to let nature take its course, but put an end to that years ago. A client’s childhood friend from grade school days ripped him a new one to the tune of over $15,000 when the smoke cleared. Now? My clients use the lender(s) I recommend or we don’t do business. It reflects on me when it turns to you know what. And no, I don’t make a dime from any lender, directly or indirectly. Never have, never will.
Lending to real estate investors isn’t the same as lending to home buyers. Anyone who’s been in the business more than five minutes is laughing at how understated that is. Your Corvette mechanic doesn’t have clue #1 about your wife’s VW diesel. ‘Nuff said.
Next time we’ll look into what info I need from new investment clients. What strategy makes more sense for them? How long do they have?
How long do you have till retirement? If you’re beginning to hear your clock tickin’, gimme a call at 619 889-7100. We’ll figure things out together. Have a good one.
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